SEC Claims CEO Lied About Felony Convictions

DALLAS (CN) - The SEC claims in court that a former chairman of the board of Standard Oil Company USA lied to investors by failing to disclose his convictions for felony securities fraud.

The SEC sued Ronald D. Brooks, 54, in Federal Court.

Standard Oil Company USA is incorporated in Florida and based in Dallas; on March 19 this year it changed its name to Gold Mining USA, according to the complaint.

Brooks was chairman of the board from about March 15, 2010 until "at least April 29, 2011," the SEC says.

The complaint states: "While serving as chairman of the board of Standard Oil Company USA, Inc. ('Standard') in 2010, Brooks certified Standard public disclosures that said he had no criminal convictions. In reality, Brooks had been convicted of multiple felonies, including securities fraud. While Brooks's false statement was publicly available to Standard's investors, Standard's stock traded on OTC Pink, an over-the-counter securities market. As a result, Brooks committed securities fraud".

After citing a disclosure certification signed by Brooks, the SEC says: "Brooks's certification was false. In reality, Brooks had been convicted of three felonies in separate cases and sentenced to prison each time. He was convicted in Kansas state court for securities-law violations in 1987 and 1992. In 1993, he was convicted of aiding and abetting concealment of property from the Federal Deposit Insurance Corporation in the United States District Court for the District of Kansas."

The SEC seeks disgorgement, civil penalties and want Brooks permanently barred from participating in the offering of a penny stock and from serving as an officer or director of a public company.

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